U.S., Canadian workers can expect pay hikes: survey

BOSTON (Reuters) - Even as companies in the auto, airline
and financial sectors slash jobs in the face of a slowing
economy, most U.S. and Canadian workers who escape the
cost-cutting ax can expect their paychecks to get a little
fatter next year.

Employers in those countries expect to increase their pay
budgets by 3.9 percent in 2009, in line with this year's
increase, according to a preliminary study released on Tuesday
by WorldatWork, a trade association for human resources
professionals.

The survey found that, on average, 91 percent of employees
can expect raises this year, with high performers seeing their
pay rise 5 percent or more and below-average workers getting 2
percent or less. Very few companies plan no raises at all.

"There was a lot of skepticism as to how the economy was
going to effect what employers are able to do financially with
their employees," said Alison Avalos, compensation practice
leader at the Scottsdale, Arizona-based group. She added that
workers can take heart in the belief that "for average and good
performance, they can expect a fairly consistent pay increase
to what they've seen in recent years."

The increase is roughly in line with what employers have
planned through this decade. Average pay increases hit their
lowest rate in the survey's 35-year history in 2003 and 2004,
when employers held raises to an average of 3.6 percent.

GRIM SUMMER

The news comes during what has so far been a grim summer
for workers in many sectors.

Ailing U.S. automaker General Motors Corp said on Tuesday
it would seek to cut its white-collar employment costs about 20
percent by cutting thousands of managerial jobs. It joined
airlines including United Airlines, a unit of UAL Corp , and
mortgage lender IndyMac Bancorp Inc, which has been seized by
regulators, in shedding workers.
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